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BETH LARSEN DANIEL FORD, D.SC. KIM SNYDER MICHAEL FLEISCHER

VICE PRESIDENT OF CLIENT CHIEF INFORMATION OFFICER (CIO) STRATEGIC SERVICES | V3DPO SENIOR VICE PRESIDENT
JOVIA FINANCIAL CREDIT UNION
ADVISORY SERVICES ROUNDTABLE TECHNOLOGY STERLINGRISK
JMT CONSULTING GROUP
As nonprofits transition from 2024 into 2025, they face a mix of challenges and opportunities in financial Staffing challenges will require organizations to embrace the “do more with As we stand on the threshold of 2025, it’s hard not to feel the accelerating pace of change. One of the most significant issues facing the non-profit sector in 2025 will be the rising cost
reporting and software utilization: less” mentality. Investing in training will be crucial; well-trained employees Nonprofit organizations are navigating challenges on multiple fronts—retaining staff, adapting of insurance premiums. These organizations often operate on limited budgets, and higher
CHALLENGES can leverage automation to handle repetitive tasks, allowing organizations to digital demands, and staying aligned with their missions. These challenges are not new, but premiums can strain their financial resources. Additionally, the increased frequency and
their urgency is growing, and solutions need to keep pace. At the heart of these solutions lies
to optimize their workforce. Automation will free up personnel to focus on an investment in people and technology: nurturing a culture of learning and development while severity of natural disasters due to climate change poses a greater risk, leading to higher
• Increased Scrutiny and Compliance Requirements: Governments and donors are demanding more claims and potentially less availability of affordable coverage. Cybersecurity threats also
transparency and accountability. Nonprofits need to comply with evolving regulations, reporting demands, complex and high-priority responsibilities, which is essential when resources ensuring IT systems support—not hinder—the incredible work nonprofits do every day.
and cybersecurity compliance. are tight. remain a pressing concern, with non-profits being targeted for their potentially weaker
• Data Integration and Accuracy: Many nonprofits still struggle with siloed systems that make it difficult Take a moment to think about your own team. Is your staff energized by their work or weighed down security measures.
to integrate financial data with program and donor management systems. This leads to inefficiencies and Artificial intelligence and machine learning are poised to revolutionize the by systems that seem to work against them? Research tells us that employees at organizations
potential errors in reporting. with outdated technology are not only more frustrated but also more likely to leave. For nonprofits, The insurance marketplace for the non-profit sector is expected to experience several
• Cybersecurity Threats: As financial and donor data becomes increasingly digital, nonprofits are becoming nonprofit sector. These powerful tools can help nonprofits identify donor where budgets are tight and missions are critical, that’s a recipe for disruption and burnout. significant trends and changes by 2025. Here are some key insights:
targets for cyberattacks. Robust cybersecurity measures and secure financial platforms are essential. trends, optimize programs, and make data-driven decisions. For instance, AI The solution isn’t simply “better technology” or “more training.” It’s about creating an environment
• Budget Constraints: Nonprofits often operate with limited budgets, making it challenging to invest in can analyze donor data to identify patterns and predict future giving, allowing where technology becomes a true enabler, reducing burnout by empowering your team to do their • Increased Demand for Cyber Liability Insurance: As non-profits continue to rely
cutting-edge financial software or hire skilled professionals to manage complex reporting requirements. nonprofits to tailor fundraising appeals. Additionally, AI-powered chatbots best work while feeling supported and valued. The stakes couldn’t be higher—because what’s at more on digital platforms for fundraising and operations, the demand for cyber liability
• Retention of Skilled Staff: The demand for data-literate professionals in the nonprofit sector is rising. can provide 24/7 support to donors, answering questions and addressing risk isn’t just your staff’s satisfaction. It’s your mission. insurance will grow. This will help protect against data breaches and cyber-attacks,
Retaining skilled staff who can manage and optimize financial reporting systems is a pressing issue. which are becoming more prevalent.
concerns.
OPPORTUNITIES Imagine a workplace where technology helps, not hinders. Where tools don’t just function—they • Focus on Directors and Officers (D&O) Insurance: There will be a heightened focus on
Data privacy is another critical issue for nonprofits. Regulations like GDPR transform how people work, reducing stress and burnout by eliminating repetitive frustrations.
• Leveraging AI and Automation: AI tools can automate repetitive financial tasks, improve data analysis, That’s the promise of IT excellence, and for nonprofits, it’s a critical foundation. IT governance D&O insurance due to increased scrutiny and regulations surrounding governance and
and provide predictive insights, enabling nonprofits to allocate resources more effectively. and CCPA underscore the importance of protecting sensitive donor and may not sound exciting, but it’s the secret sauce to making technology work for you. From financial management within non-profits.
• Enhanced Donor Engagement Through Transparency: Improved financial reporting capabilities can build program data. By prioritizing data privacy, nonprofits can build trust with planning upgrades to prioritizing staff needs, effective IT governance ensures your systems align
trust with donors by demonstrating impact and accountability. Platforms with built-in dashboards and their supporters and avoid legal and reputational damage. with your goals. • Emphasis on Risk Management: Non-profits will be encouraged to adopt comprehensive
visualization tools make it easier to share meaningful metrics. risk management practices. Insurers may offer incentives for non-profits that implement
• Collaborative Platforms: Tools that integrate donor management, program tracking, and financial Cybersecurity literacy is often overlooked. Nonprofits must invest in training But this isn’t just about technology itself. It’s about the people who use it. Nonprofits that invest robust risk mitigation strategies. These strategies can include safety programs for both
reporting provide a holistic view of operations, improving decision-making and strategy alignment. their employees to recognize and respond to cyber threats. By empowering in IT as a strategic priority often find an unexpected benefit: happier, more engaged staff with property and casualty exposures such as premises liability as well as auto exposures.
• Grant- and Donor-Driven Technology Investments: Many donors and grant makers are willing to staff with knowledge and skills, organizations can strengthen their defenses less burnout. And when your team feels supported, their ability to deliver on your mission grows
exponentially.
fund technology improvements, recognizing the need for modern infrastructure to ensure impact and • Premium Adjustments: Economic factors and claims history will influence premium
transparency. against hackers and data breaches. For example, AI-powered cybersecurity rates. Non-profits with a good risk profile and proactive risk management practices may
Technology innovations enable nonprofits to operate with greater agility, transparency, and impact. To capitalize tools can detect and respond to threats in real-time, protecting sensitive 2025 is a milestone, not a finish line. The nonprofits that thrive will be those that invest in their benefit from more favorable premiums.
people and their technology, creating environments where staff feel empowered and inspired. This
on them, organizations should: data. isn’t just about keeping up with change—it’s about embracing it, using it to propel your mission
• Stay informed about emerging technologies. forward. Non-profit organizations will need to adopt more robust risk management strategies to
• Build a culture of data-driven decision-making. As the nonprofit landscape continues to evolve, it’s essential to embrace So, as the calendar turns, ask yourself: what kind of organization do we want to be? One that navigate the complex regulatory and economic landscape; including the adoption of a risk
committee, risk discussions at the board level, and a cultural shift that looks at ways to
• Partner with vendors offering tailored solutions for the nonprofit sector. technology while prioritizing ethics, privacy, and security. By staying informed struggles to keep pace—or one that leads with purpose, adapting to change and thriving in the mitigate organizational exposure to risk.
By embracing these trends, nonprofits can strengthen their operations, meet donor expectations, and maximize and taking proactive steps, nonprofits can thrive in the digital age. face of challenge? The answer starts with your people and your commitment to supporting them
their mission impact. every step of the way.